Reference Designer

If you are a merchant and want to integrate Google Checkout or paypal in your system, you should be aware of the fee that is imposed by Google and Paypal. Note down the following fee.

Google

Here are the excerpts from Google’s own webiste

Monthly sales under $3,000 2.9% + $0.30 per transaction
$3,000 – $9,999.99 2.5% + $0.30
$10,000 – $99,999.99 2.2% + $0.30
$100,000 or more 1.9% + $0.30

Most of the transaction is expected to be under $3000. So note down 2.9% plus $0.30. Notice that the figure $0.30 means that the minimum amount that you will usually transact will be of $10, since the fee will be $0.30 whether your transaction amount is $1 or $10.

Also note from Google

Orders from buyers whose billing address is outside the country of your Google Checkout account will be assessed an additional 1% processing fee. Cross-border orders are noted within your account on the Order Details page.

Paypal

As per paypal fee schedule the fee is same. Here are excerpts.

The standard rate for receiving payments for goods and services is 2.9%.

$0.00 USD – $3,000.00 USD 2.9% + $0.30 USD
$3,000.01 USD – $10,000.00 USD 2.5% + $0.30 USD
$10,000.01 USD – $100,000.00 USD 2.2% + $0.30 USD
> $100,000.00 USD 1.9% + $0.30 USD

If you receive more than $3,000.00 USD per month, you’re eligible to apply for PayPal’s Merchant Rate which lowers your fees as your sales volume increases.

Do we have other options ? Yes certainly we do have other options that lower the cost. Moneybookers levy a fee of $0.30 fixed plus 2.30% of transaction fee. This is not substantially lower for smaller amounts. But for $100 transaction, google and paypal will take away $3.4 while moneybookers will take only $2.6 – a saving of $0.60. Consider 10,000 such transactions happening in a month and this makes a difference of $6000.

Webmoney is another option that incurs a fee of 0.8%. However, funds can only be deposited into or withdrawn from webmoney accounts by money order, wire transfer, by conversion from other electronic currencies, or by cash transactions at authorized exchange offices. All of these incur various fees. So the total transaction fee will be the sum of the two transaction fee. It is also possible to purchase WM cards for $10–$100 in order to fund an account.

Uncategorized finance, money

I recently had an issue, which looks like a inter bank transaction issue. I had to pay $3114.35 to my American Express credit card. I paid the amount on 8/21/2009. The payment was declined by my Bank of America checking account.

Even though I had sufficient money in my account. See the screen shot below.

I called American Express on 9/01/2009 and they said that they can do nothing about it as Bank of America declined the payment. They also slapped $38 for the returned check. I tried contacting Bank of America and I was frustrated with their automated Phone system. Then I tried to contact Bank of America using their chat system.  This also proved useless. Here is the chat transcript.

Welcome to an online chat session at Bank of America. Please hold while we connect you to the next available Bank of America Online Banking Specialist. Your chat may be monitored and recorded for quality purposes. Your current wait time is approximately 1 minutes. Thank you for your patience.

After 5 minutes

We are currently experiencing a high volume of chat sessions. All Online Banking Specialists are currently assisting other customers. We apologize for any inconvenience. Thank you for your patience.

Thank you for choosing Bank of America. You are now being connected to a Bank of America Online Banking Specialist.

You: Hi

Romy: Hello. Thank you for being a valued Bank of America customer.

Romy: My name is Romy. How may I assist you today with your personal accounts?

You: Hi Romy I have an issue with making payment to my American Express Card

You: On 8/21/2009 I made a payment of $3,114.35 to American Express for paying my credit card.

You: The payment was declined by Bank of America.

You: I checked my Account and there was enough money in my account on 8/21/2009.

Romy: We began online chat support recently, so the scope is limited only to personal checking and savings accounts as of now.

Romy: To get quick assistance with your credit card, if you like I can get the contact phone number of our trained specialist.

You: ok

You: what is the number ?

Romy: I recommend you to call our Credit Card services at 1.800.732.9194.

Romy: We are available 24 hours a day, seven days a week.

Romy: I appreciate your understanding in this matter.

You: it is not about credit card

You: It is about my Checking / Saving Accouny

You: It is about a returned check

Romy: Alright.

Romy: May I have your complete name in order to assist you better?

You: Vikas Shukla

Romy: Thank you, Vikas

Romy: Please allow me some time to access your account information.

You: you are welcome Romy

You: sure

Romy: May I have the last four digits of the account that you are referring?

Romy: Are you with me?

You: The Debit card last four digits are  xxxx

You: The account last 4 digits are xxxx

Romy: Thank you very much.

Romy: May I also have the amount of the transaction that you are referring too?

You: 3,114.35

You: I have a American express credit card

Romy: I do not see this transaction listed in your record.

Romy: Are you referring to an online Bill Payment?

You: I paid the amount from my account from American Express

You: Let me clarify it – I logged in to my American Express Credit Card Account and made my bill payment there

You: The payment is drawn from my Bank of America Account

You: The Payment was declined by Bank of America

You: Now American Express Charged for returned check

Romy: I request you to call at 1.800.432.1000. to know about this.

You: ok

Romy: They will be able to provide you with the complete details on this.

You: no one seems to be available on this phone

Romy: As in your records there nothing mentioned about this transaction.

You: is it only automated ?

Romy: They are off now.

Romy: Please call them tomorrow morning.

Romy: We are available between 7 a.m. and 10 p.m. from Monday to Friday and 8 a.m. to 5 p.m. on Saturday and Sunday, local time.

You: I am not sure why did you refer to that phone then earlier ?

Romy: That’s for credit card department.

You: But I do not want credit card department

You: It is about my checking account

You: The credit card company is American Express – you have nothing to do with that

You: American Express tried to withdraw money from my Bank of America Checking Account

You: and the check bounced – even though I had enough money in my checking account

Romy: Yes, I agree with you.

You: Not sure why I should contact Bank of America Credit Card Department

Romy: However, in your checking account I do not see ant transaction been rejected

You: But American Express says that the money was rejected

Last text message received. Due to problems with the Internet or a technical issue we are experiencing at Bank of America our connection with you has been lost. We apologize for any inconvenience this has caused.

Looks like the talk was snatched.

Uncategorized bank, finance